EGX launches Sharia-Compliant Index
Updated 6/12/2024 2:55:00 PM
Arab Finance: The Egyptian Exchange (EGX) has launched the EGX33 Shariah Index, a new index compatible with Islamic law, including 33 companies, as per a statement on June 12th.
This index aims to attract new investors to the financial market by including shares of companies whose activities and financial conditions align with Islamic Sharia.
The companies included in the EGX33 Shariah Index were selected by the Sharia Supervision Committee of the Financial Regulatory Authority (FRA).
Chairman of the EGX Ahmed El Sheikh announced at a press conference that the new index would enable asset managers to create new financial products like index-tracking funds.
He added that investment fund managers seeking to use this index as a reference must ensure that investments in any single company do not exceed 15% of the fund's net assets and 20% of the company's securities.
El Sheikh also mentioned that the maximum relative weight of each stock in the index is capped at 15%.
Talaat Mostafa Holding Group’s (TMG) stocks constitutes 15% of the new index’s weight.
Elsewedy Electric’s stock account for 10.27% of the index's weight, while Abu Qir Fertilizers' stock make up 9.08%.
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